Aurelia Butler

Investing.com — Micron unveils a $40 billion plan to bring its chip manufacturing back to the U.S. as President Joe Biden prepares to sign the Chips and Science Act into law. Alibaba is heading the other way, as Hong Kong approves its plans to move its primary listing back from the U.S. Travel names continue to churn out strong quarterly reports as the tourism boom’s momentum stays strong. Stocks are becalmed ahead of Wednesday’s CPI report, and oil spikes on a report that Ukraine is blocking shipments of Russian crude to central Europe. Here’s what you need to know in financial markets on Tuesday, 9th August. 1. Biden set to sign Chips Act, as Micron lays out $40 billion reshoring planChipmaker Micron (NASDAQ:MU) announced a plan to invest $40 billion by the end of the decade to grow its manufacturing base in the U.S., leaning heavily on the government subsidies outlined in the recently passed Chips and Science Act, which President Joe Biden is due to sign into law on Tuesday.The reshoring of manufacturing capacity reflects, among other things, national security concerns, given the deterioration in U.S.-Chinese relations over recent years, illustrated starkly by China’s reaction to House Speaker Nancy Pelosi’s visit to Taiwan last week. Most of Micron’s manufacturing capacity is located in Greater China and Japan.The announcement comes amid growing concern at a looming glut in chip supply, after a pandemic-fueled surge in demand for appliances, computer gaming, and cryptocurrency. Rival Nvidia (NASDAQ:NVDA) sharply cut its forecasts on Monday, citing weakness in gaming in particular.2. Alibaba heads to Hong KongDeglobalization goes both ways.Hong Kong approved Alibaba’s (NYSE:BABA) plans to transfer its primary market listing to the Hong Kong Stock Exchange, a decision that makes for a neat counterpoint to Micron’s repatriation of its manufacturing capacity.In more practical terms, the move will make it easier for mainland Chinese investors to get access to the stock through the ‘stock connect’ program that links the Hong Kong and mainland exchanges. Whether that will be enough to offset the more restricted access that non-Chinese investors may face in future is open to question.The move is likely to take place before the year-end, according to various reports.Elsewhere in China, Tesla’s Shanghai factory saw its production drop by two-thirds in July from a month earlier, although that was due to scheduled maintenance rather than any expression of U.S.-China tension.3. Stocks becalmed ahead of CPI; Small businesses bemoan inflationU.S. stock markets are set to open flat later, with Wednesday’s release of the July consumer price inflation report casting a long shadow ahead of it.Hopes for a peak in the CPI have grown, with market participants leaping on tentative evidence of a drop in consumer expectations for inflation in the New York Fed’s latest survey that was released on Monday. However, prices have repeatedly risen by more than expected in recent months. Inflation was the top concern reported by small businesses in the monthly NFIB report just released.By 6:20 AM ET (1020 GMT), Dow Jones futures were unchanged, while S&P 500 futures were down 0.1%, and Nasdaq 100 futures were down 0.4%.In addition to chipmakers, other stocks likely to be in focus later include International Flavors & Fragrances (NYSE:IFF) and News Corp (NASDAQ:NWSA) after their strong earnings beat late on Monday. Emerson (NYSE:EMR), Sysco (NYSE:SYY), TransDigm (NYSE:TDG), and Ralph Lauren (NYSE:RL) all report early, while Wynn Resorts (NASDAQ:WYNN) reports after the close.4. Travel is still the strongest sector in this earnings seasonThe global travel sector remains a standout in the current earnings season, with duty-free giant Dufry (SIX:DUFN) and InterContinental Hotels Group (NYSE:IHG) both reporting sharp rebounds in business overnight. IHG – the owner of Crowne Plaza and Holiday Inn, still fell, however, after failing to match the blistering performance of rivals Hilton and Marriott.Both companies noted that revenue had exceeded 2019 levels in North America, with Europe lagging a little (pressure for an EU ban on Russian tourists is growing) and China lagging a lot, due to its zero-COVID policy. Neither predicted any meaningful slowdown in demand in the near future.Norwegian Cruise Line (NYSE:NCLH) is due to continue the theme with its report earnings later.5. Oil spikes on Ukraine reportCrude oil prices recovered on perceptions that the abrupt recent selloff has gone far enough in the near term.The market was also settled by headlines suggesting that Ukraine’s pipeline operator UkrTransNafta has stopped pumping Russian oil across the country’s territory to customers in central Europe, in what would be an unexpected escalation of the energy conflict between Russia and its European neighbors.The headlines would suggest that Ukrainian frustration at continued European purchases of Russian fuel – which it says helps finance the war – has boiled over. The move comes a day after the Biden administration approved a further $1 billion in military aid for Ukraine.The American Petroleum Institute releases its weekly inventory data at 4:30 PM ET, as usual. More

Measures include corporate income tax exemption of up to 15 years for businesses in the area and a tax exemption for dividends, government spokesperson Ratchada Thanadirek said in a statement.The plan is part of the Eastern Economic Corridor, which covers three provinces east of the capital, Bangkok. This is the centrepiece of government efforts to boost growth and encourage investment, especially in high-tech industries.In June, the government approved investments worth $9.6 billion over five years in the industrial east, including infrastructure and utilities.The zone enjoying the benefits will also include the U-Tapao airport, which was completed in the Vietnam War for U.S. Air Force B-52 bombers and has since been used as a low-key civil-military facility.U-Tapao will be linked by high-speed rail to the country’s main airport, Suvaranabhumi, and the Don Muang facility for low-cost aviation. The aviation and logistics industry to be built up at U-Tapao is planned to be the anchor of the special economic zone.Within the zone would be a 1.35-square-kilometre district called an airport city, which would include five-star hotels, high-grade restaurants and entertainment and conference space, Ratchada said.Additional measures, such as personal income tax benefits were being considered, she said.Among other perks, the city will allow alcohol sales around the clock. In other parts of Thailand, shops cannot sell alcohol between 2pm and 5pm or after midnight. More

Good morning. Federal agents searched the Florida residence of Donald Trump last night — a significant step by prosecutors regarding the former president’s handling of classified information.Trump disclosed the raid in a statement posted on social media in which he said that a “large group” of FBI agents were at the Mar-a-Lago club, his residence in Florida. He added that it was “currently under siege”.The Department of Justice and FBI declined to comment, but one person familiar with the search said it was related to Trump’s handling of sensitive material from his time in the White House. Earlier this year, 15 boxes of classified documents, including some that were marked “top secret”, were retrieved from his Florida home.The search by the FBI represents a remarkable step by US authorities to scrutinise the actions of a former president. Such a move is likely to have been approved at the highest levels of the justice department, including attorney-general Merrick Garland. Dig Deeper: Edward Luce explains why putting the former president in the dock risks civil strife, but a failure to act is also dangerousFive more stories in the news1. Taipei accuses Beijing of trying to take control of Taiwan Strait Taipei has warned that China could use military drills around the island to establish control over the entire Taiwan Strait. The warning, from foreign minister Joseph Wu, came as the People’s Liberation Army said it was extending joint air and naval exercises around Taiwan for a second day — they were originally scheduled to end on Sunday.2. US pledges further $1bn in military aid for Ukraine The new package, the largest single drawdown since the start of Russia’s invasion, will include ammunition for high mobility artillery rocket systems (Himars) and bring total US security aid to Ukraine since Biden took office to about $9.8bn.3. Masayoshi Son ‘ashamed’ of focus on profits Huge losses at SoftBank’s flagship Vision Funds will force the Japanese investment group to begin “dramatic” cost-cutting after plunging technology valuations and a weak yen drove the conglomerate into a record $23bn quarterly net loss.“If we had been a little more selective and invested properly, it would not have hurt as much” — Masayoshi Son4. ‘Final text’ submitted in effort to revive Iran nuclear deal EU officials mediating talks between the US and Iran aimed at reviving the 2015 nuclear accord have put forward the “final text” of an agreement they hope will convince Tehran to sign. The latest round of negotiations bore the hallmarks of a last-ditch attempt to secure an agreement between the Islamic republic and the Biden administration.5. London’s ‘magic circle’ law firms make renewed bid to crack US For decades, cracking the US has proved to be a step too far for London’s top corporate law firms. But Freshfields Bruckhaus Deringer, Clifford Chance and Allen & Overy are all in the midst of a multipronged and expensive assault on the world’s most lucrative legal market as the “magic circle” firms seek to build on their past strength in Europe and become global heavyweights. The day aheadKenya general election In one of Africa’s most significant elections of the year, Kenyan voters will select the president, deputy, members of parliament and devolved government members. Presidential candidates Raila Odinga and William Ruto are deadlocked in polls.Rudy Giuliani to testify The former New York City mayor turned personal attorney to Donald Trump has been ordered by a judge to testify in front of a Georgia grand jury over attempts by the former president’s supporters to overturn the 2020 presidential vote in the state.Corporate earnings The InterContinental Hotels Group, which owns the Holiday Inn and Crowne Plaza chains, will publish half-year results. In February, IHG said business was “closer to pre-pandemic levels” as rising vaccination rates boosted demand for its hotel rooms. Half-year results are also in for Legal and General and Munich Re, while Ralph Lauren reports first-quarter earnings.Brazil Monthly inflation data will be released today.What else we’re readingHow corporate raiders became teams of rivals The private equity industry was founded by mercenary dealmakers who bludgeoned opponents to win control of large corporations such as RJR Nabisco, Alliance Boots and Philips Semiconductors. Now, firms nurture complex relationships with their competitors. How did they get here?Xi Jinping completes grip on power Xi finally has something that eluded him for almost a decade, explains Tom Mitchell in Singapore in this insightful article: a trusted confidante at the top of China’s police ministry. Wang Xiaohong’s appointment as public security minister in June marked another breakthrough for Xi in his relentless consolidation of power since being appointed head of the Chinese Communist party and its Central Military Commission in 2012. It’s too early to declare the risk of US recession over Some believe the recent jobs report implies the US will avoid a recession. While he hopes this is correct, Mohamed El-Erian writes that it is too early to declare the watch over — something that the government bond market seems attuned to.Small businesses count cost of Apple’s changes Small businesses are cutting back their marketing spend owing to the tech giant’s sweeping privacy changes that have made it harder to target new customers online. This has led to billions of dollars in lost revenues for platforms such as Facebook, while many small companies are also suffering. Find out why.Corporate America fumes over Biden’s tax and climate package Corporate America had been warning the president and congressional Democrats not to raise taxes on big business ever since they were elected. So when lawmakers approved those tax increases as part of a $700bn economic package that passed the Senate on Sunday, companies and their lobbyists reacted with howls of protest, as James Politi in Washington and Andrew Edgecliffe-Johnson in New York, explain. Germans plan soccer spreeBayern Munich, one of the most dominant soccer teams in Germany, is targeting growth in the US as it pushes to close the gap with high-spending rivals in the English Premier League.Oliver Kahn, chief executive of the club, and a former captain of both Bayern and the national team, told the FT the club was seeking to expand its fan base overseas, with a view to boosting the long-term value of global broadcast rights for the Bundesliga football league.

Bayern Munich’s German midfielder Jamal Musiala scores against Eintracht Frankfurt last week © AFP via Getty Images More